Photos of shopping center where the future Trader Joe's will be located near Horsetooth Road and College Ave. Wednesday Oct. 30, 2013. / V. Richard Haro / The Coloradoan

The popular urban grocer has signed a lease to open its fifth Colorado store at The Square, 3500 S. College Ave., the home of Hobby Town USA, the Bible Superstore and others, sources have told the Coloradoan.

Though the retailer famous for its Two-buck Chuck wine has not filed formal plans with the city, zoning supervisor Peter Barnes confirmed a contractor had inquired about how big a Trader Joe’s sign along College could be.

Trader Joe’s consistently ranks as the top retailer sought by city residents and was high on Alberta Development Partners’ wish list for the revamped Foothills Mall north of The Square.

Details are still sparse, but the specialty retail grocer plans to occupy the space leased seasonally by a Halloween store and open sometime next year. It was most recently the home of Corral West Ranchwear, which closed its doors in early 2009 amid corporate bankruptcy filing.

Realtor Debbie Tamlin of Integrated Real Estate, who markets The Square, said existing tenants would be the first to know when new tenants were signed.

The Square, which lies in the city’s Midtown corridor, was cited for blight in a study conducted by the city as it made a case to establish an urban renewal area in Midtown. Knudson said The Square may be in for a remodel of its own, but details still are being discussed.

Office Depot, the second-largest tenant at The Square, is in the process of vacating the center after it failed to come to a long-term lease agreement with Knudson. The Square is not affiliated with Foothills Mall and is not part of the $312 million renovation expected to get underway later this year.

City Manager Darin Atteberry declined comment on Trader Joe’s status in Fort Collins but said it is an important retailer long desired by residents. Trader Joe’s emergence in the Colorado market “is a real positive and I believe they would be a great fit in Fort Collins,” he said.

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Atteberry wrote to Trader Joe’s more than 18 months ago inviting the retailer to consider Fort Collins during their expansion into Colorado.

The letter obtained through a request to the city manager’s office for communications regarding Trader Joe’s said: “Fort Collins is a vibrant college town with a diverse population that fits the Trader Joe’s demographic. “We are committed to sustainability, green development and stewardship of our natural resources and environment,” Atteberry wrote.

Trader Joe’s fourth store will open at 1906 28th St., Boulder, next year.

Confirmation of Trader Joe’s came as welcome news to those most invested in Midtown, a 5-mile stretch along College Avenue from Prospect Road to south of Harmony Road. Developer Les Kaplan owns the vacant Toys R Us building a half-mile from The Square and Carmike Cinemas on Mason Street. He called the addition of Trader Joe’s a “home run” for Fort Collins.

“If you take one of the most popular food retailers nationally and put them in the center of Midtown, it is going to immediately communicate a greater sense of vitality and interest by other retailers and users for additional redevelopment,” he said.

Kaplan is working to find tenants for the Toys R Us building, the largest vacant retail space in Midtown. Adding Trader Joe’s and a redeveloped mall will bring even more state and national focus to Midtown, he said.

It might cause regional retailers who have overlooked Fort Collins in the past to pay more attention to the city, said Luke McFetridge, president of the South Fort Collins Business Association. “It may open their eyes ... and reinforce the re-emergence of Midtown.”

Kaplan said Trader Joe’s is the first major retailer to locate in Midtown because of the economic promise that comes with a redeveloped mall. “This is a very positive sign for the impact that redevelopment of the mall will have on Midtown and the increased attractiveness of Midtown for other retailers,” Kaplan said.

A redeveloped mall and Square will play off each other, Kaplan said. Trader Joe’s customers will undoubtedly frequent the mall and vice versa. “Collectively they create very exciting synergy right in the center of Midtown as a regional draw.”